ann out, page-9

i agree rewind, in fact i don't think the banks will ever refinance the debt, there will simply be rolling 1 month extensions until september 2009.

the important thing here is afg never defaulted nor did it break any loan covenants, it was always able to comfortably meet interst payments given the quality of its underlying assets, the banks have simply used this review event as an opportunity to screw afg.

the banks have clearly acted unconscionably. imo afg should try to sell either the aircraft or shipping leasing business to fully repay debt and then tell the banks where to shove the 300bp margin.